Diamond Hands Pay Off as Insider Whale Recovers $88M Swing in Unrealized Crypto Profits

On-chain data reveals a remarkable turnaround for an insider whale who has recovered from a $77 million unrealized loss to a $11 million gain within a month. The whale, which had maintained leveraged long positions in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), held firm during a period of significant price declines and market uncertainty. The recovery was driven by a rebound in Bitcoin prices above $98,000, which helped the whale's unrealized profit-and-loss (PnL) improve significantly.

The whale's strategy involved maintaining a large notional position of approximately $745 million, leveraging between 3x and 10x, which amplified both gains and losses during market swings. Despite facing pre-liquidation losses as Bitcoin dropped below $87,000 in late 2025, the whale held its positions without liquidation. The whale's estimated equity of $379 million allowed it to weather the volatility without being forced out of the market.

Market conditions during the period were marked by heightened macroeconomic uncertainty, including Federal Open Market Committee (FOMC) policy signals, shifting interest rate expectations, and geopolitical tensions. These factors contributed to increased volatility in major crypto assets and put pressure on high-leveraged traders. The whale's decision to hold its positions rather than liquidating during the downturn demonstrated a long-term belief in the market, supported by strong capital and risk tolerance.

Why Did the Whale's Strategy Succeed?

The whale's success can be attributed to its high capital base, risk tolerance, and strategic use of leverage. By maintaining long positions in Bitcoin, Ethereum, and Solana during a downturn, the whale was able to benefit from the subsequent price rebound. Unlike many retail traders who exited the market during the downturn, the whale's approach focused on capital power and faith in market recovery.

The whale's unrealized PnL returned to a positive $11 million within a month, showing a 7.3% return on equity despite the large position size and high leverage. The whale's strategy demonstrated the potential rewards of high-conviction trading in crypto, but it also highlighted the risks associated with leveraged positions in volatile markets.

How Are Markets Reacting to the Whale's Strategy?

The whale's story has reinforced the 'diamond hands' narrative in the crypto community, emphasizing the importance of long-term conviction and risk management. The whale's experience shows that strategic position-holding, combined with sufficient capital, can outperform short-term, emotionally driven trading decisions during volatile periods.

Meanwhile, broader market data indicates mixed trends. While Bitcoin and Ethereum face consolidation pressures, Solana continues to attract inflows and on-chain liquidity. Solana's price remains below $130, but it has maintained a weekly ascending trend since early 2023. The token has drawn attention from retail investors and is seeing increased decentralized exchange (DEX) volume. A weekly breakout above $150 could signal further upside potential.

Ethereum, on the other hand, has shown resilience in 2025, leading all blockchains in capital inflows. Institutional investors, including Tom Lee's BitMine, continue to increase their Ethereum staking positions, with BitMine now holding $1.3 billion in staked ETH. Institutional products like BlackRock's staked Ethereum ETF have also contributed to growing demand for the asset.

What Are Analysts Watching Next?

Analysts are closely monitoring Bitcoin and Ethereum's ability to break out of their current consolidation phases. A sustained move above $90,500 for Bitcoin and $3,000 for Ethereum could indicate a shift in market sentiment. Ethereum's $3,000 level is a key inflection point that has historically determined whether the asset trends higher or reverts to consolidation.

For Solana, the $120 level is a crucial support area. If the price holds above this level, it may trigger a rebound, especially if buying pressure stabilizes. A clean weekly close below $120 could signal a deeper retracement.

Investors are also watching for further developments in institutional crypto adoption, including new staking products and regulatory changes. PwC and other Big Four firms have expanded their crypto services, offering audit, consulting, and tax support to clients in the digital assets space. This trend is expected to continue as more traditional financial institutions enter the market.

Webull Corp and BitFuFu Inc are also showing strong performance in Q3 2025, with Webull reporting $156.9 million in revenue and BitFuFu reporting $180.7 million in revenue. Both companies are expanding their offerings in crypto trading, cloud mining, and institutional partnerships.

The whale's success story serves as a reminder of the potential for high returns in crypto markets, especially during volatile periods. However, it also underscores the importance of capital, risk management, and long-term strategy when trading in leveraged positions. As the crypto market remains in a dynamic phase, the whale's experience provides valuable insights for investors navigating the landscape in 2026 and beyond.